Setting Up a Business Entity

Summary of the process to establish a business in PA

How long will it take me to set up a subsidiary in Pennsylvania? And how much will it cost me?

Assuming you have the necessary information at the ready, you can create a subsidiary in as little time as a day. “Necessary information” includes information such as the company name, address, contact persons, intended capitalization, and similar items. Once the company is formed, you will likely be required to draft organizational resolutions and other “housekeeping” items may be required — such as establishing a bank account, adopting bylaws, and arranging financing.

Legal fees associated with incorporating or otherwise establishing a subsidiary typically range from $1,000-$2,000 (U.S.), depending on the nature and complexity of the subsidiary relationship. The Commonwealth of Pennsylvania charges a fee of $125 to file the documents needed to register your company.

For more information: www.dos.pa.gov/BusinessCharities/Business

Is it better to set up a Corporation or an LLC?
Is it preferable to incorporate in Delaware, rather than in Pennsylvania?
How do I protect my U.S. subsidiary, as well as its parent, from litigation by business partners or clients?
Do I have to pay taxes in Pennsylvania, even if I do not make any profit the first year or the first few years in which I do business in the state?
How does Pennsylvania’s corporate net income tax rate compare to other states?

*Source: Brian J. Hoffman, CPA CFE | Citrin Cooperman & Company LLP | www.citrincooperman.com

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